How to close a cooperative

It happens that the once organized cooperative does not fulfill its obligations, does not conduct any activity, and its very existence has lost its meaning. In such situations, it may be necessary to close the organization. The cessation of the housing and housing construction cooperative is regulated by Articles 58 - 64 of the Civil Code of Russia.

Instruction manual

1

Draw up documents on the liquidation of the cooperative, which will entail the cessation of its activities without transfer of rights and obligations in succession to other persons. To do this, gather a general meeting of the cooperative members and draw up a protocol, which will indicate that the meeting has decided to liquidate this organization.

2

Report the liquidation to the tax authorities to include information in the Unified State Register of Legal Entities that the cooperative is shutting down.

3

At the general meeting of the cooperative members, appoint a liquidation commission and establish the procedure and terms for liquidation.

4

Publish a notice in the local newspaper about the termination of the cooperative and that all claims, including creditor claims, should be sent to the commission. Take steps to identify lenders and pay off receivables.

5

After the expiration of the period intended for the presentation of claims by creditors, the liquidation commission draws up an interim liquidation balance sheet containing information on the composition of the cooperative’s property, the list of creditors' claims, and the results of their consideration. The interim liquidation balance sheet is approved by the general meeting of the cooperative members.

6

If the funds available to the organization are insufficient to pay off all the claims of the creditors, the liquidation commission sells the property of the cooperative at auction. Having completed all settlements with creditors, the commission draws up the final balance sheet, which must also be approved by the general meeting of its members.

7

Liquidation is considered complete, and the cooperative closed, if the relevant entry has been made to the Unified State Register of Legal Entities.

8

If the meeting cannot decide, please contact the court. The process will be quick if you prove that mistakes were made during the creation of the cooperative, provided that these violations are irreparable. You can also reasonably refer to the fact that the organization carries out activities without the appropriate permission (or license), or conducts activities prohibited by law, or has repeatedly violated the law.

9

Initiate bankruptcy proceedings, however, in modern conditions, this process is very complicated and is always under the close supervision of regulatory authorities. Assign a lawyer to a case manager.

10

Housing and housing cooperatives may also cease operations through reorganization. The general meeting of members of the cooperative may be an accession, merger or transformation of the cooperative.